It certainly won't be called "M", since it's a more direct competitor to Leica's system than the Olympus OM was back in the 70s, and Leica gave them huge grief over their original name of "Olympus M". If the Japanese text says the name "M" is part of the rumor, this alone tends to discredit it.
As for the ugliness, it sure is, but there's no evidence either Canon or Nikon understand how much damage the ugliness of their cameras is doing to their businesses.